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FIGURE 29-3 -Refer to Figure 29-3.The Movement of the Economy from E₁

Question 80

Multiple Choice

FIGURE 29-3 -Refer to Figure 29-3.The movement of the economy from E<sub>1</sub> to E<sub>2</sub> was likely caused by A) a negative demand shock associated with a reduction in net exports. B) a positive supply shock caused by improved productivity. C) a monetary expansion by the Bank of Canada. D) an increase in the price level. E) a negative demand shock combined with a positive supply shock. FIGURE 29-3
-Refer to Figure 29-3.The movement of the economy from E₁ to E₂ was likely caused by

A) a negative demand shock associated with a reduction in net exports.
B) a positive supply shock caused by improved productivity.
C) a monetary expansion by the Bank of Canada.
D) an increase in the price level.
E) a negative demand shock combined with a positive supply shock.

Correct Answer: